CHARLESTON, S.C. – Three people last week pleaded guilty to roles in a loan scheme that siphoned more than $800,000 from area credit unions with auto loans that were not used to buy vehicles.
The three are among seven charged with fraudulently obtaining auto loans by providing false documentation to more than 16 different credit unions and banks, including Charleston Area FCU, Truliant FCU, Vystar CU, Heritage Trust FCU, South Carolina FCU, South Carolina FCU, Space Coast CU, Carolina Foothills FCU, South Carolina Telco FCU, CPM FCU, Community 1 FCU and Navy FCU.
The three pleaded guilty to charges of conspiracy to commit bank fraud and providing false information in a loan application.
The ring submitted auto loan applications that included misrepresentations and often were accompanied by false documents. The proceeds of the funds were not used to buy cars but for personal use.
The false documents included bills of sale, statements of income, pay stubs and representations that the vehicles had been purchased.
